I think they meant "democratic socialism", which isn't an alternative economic system at all, but also fails because it 1) eventually runs out of other people's money, or 2) transforms into full-blown state socialism and fails because of one of the reasons you stated.
In Europe we see the slow collapse of scenario 1 as they mass import migrant workers to try and prop up the economy. In Venezuela we saw scenario 2. Parasites who can vote will keep demanding more.
I think they meant "democratic socialism", which isn't an alternative economic system at all, but also fails because it 1) eventually runs out of other people's money, or 2) transforms into full-blown state socialism and fails because of one of the reasons you stated.
In Europe we see the slow collapse of scenario 1 as they mass import migrant workers to try and prop up the economy. In Venezuela we saw scenario 2. Parasites who can vote will keep demanding more.